India is expected to become the world’s fourth-largest economy by 2025, surpassing Japan for the first time. This development is based on the International Monetary Fund’s current World Economic Outlook, which was released in April 2025. The IMF expects India’s nominal GDP to be $4,187.017 billion in FY26, slightly ahead of Japan’s anticipated $4,186.431 billion.
Until 2024, India was ranked fifth worldwide. This breakthrough is a significant milestone in the country’s economic development. According to the analysis, India will continue its rising trend, potentially surpassing Germany to occupy third place by 2028. At that point, India’s GDP is predicted to reach $5,584.476 billion, compared to Germany’s estimated $5,251.928 billion.
According to predictions, India’s GDP will reach $5 trillion by 2027. Meanwhile, the United States and China are expected to remain the top two economies for the foreseeable future.
However, the IMF has cut India’s 2025 GDP forecast downward to 6.2%, citing increased global trade tensions and policy uncertainty. Despite the change, the forecast remains robust, supported by strong domestic demand, particularly in rural areas.
